Question

TurboTax continues to ask about home refinance

Forum|Forum|5 years ago
February 3, 2021
1 reply
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I did a home refi in 2018 and reported it on my 2018 taxes. Do I have to continue to report that specific refi on my 2020 taxes? Specifically, as of the 2018 refi, does it become the "original mortgage" as TurboTax would see it since the question related to this is asking if I ever did a refi versus if I did a refi the previous year.

Thanks

C

Cynthiad66

Something to keep in mind is that refinancing your mortgage can significantly reduce your total tax deductions. Refinancing to a lower mortgage rate means you'll be paying less interest, which means you'll have less mortgage interest to deduct when tax time comes around. The difference can be substantial.

When refinancing a mortgage to get a lower interest rate or obtain more favorable loan terms, you're really just taking out a new loan and using the money to pay off your existing home loan. In general, the same tax deductions are available when you're refinancing a mortgage as when you're taking out a mortgage to buy a home.

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L

lildog006Author

Thanks for the response, but I think you may have misunderstood the question. Let me try to re-word it better ..... After reporting a home refinance on federal taxes in 2018, does one have to continue reporting the same home refinance on future subsequent federal tax filings (i.e. 2020 federal tax filing)?